Demand for Industrial Land Increases as Vietnam Economy Is Thriving

Updated on Friday 16th March 2018

Vietnam is one of the most important industrial centers in Southeast Asia, which is why the government has noted an increase in the purchase of industrial land plots and the demand is still high. Most of the applications for buying industrial land are for Ho Chi Min, as this city’s industrial production index grew considerably last year. Foreign investors who are interested in setting up companies in Vietnam can rely on our local consultants.


Ho Chi Min and Hanoi, the most sought industrial zones in 2017


The high demand for industrial land has led to the increase of the city’s industrial production index by 7.9% last year, while Hanoi’s industrial production index rose by 7.1%. The growth was based on the number of companies established in the industrial sector in Vietnam, but also to the foreign direct investments (FDIs), two factors which are expected to drive growth into the economy in 2018 as well.

In terms of FDIs, Ho Chi Min attracted 6,3 billion USD, which Hanoi brought another 2,4 billion USD to Vietnam’s Gross Domestic Product (GDP) last year, a 22.5% increase compared to 2016.
In 2018, the production of both local and foreign companies operating in Vietnam is expected to grow.

Our company formation advisors in Vietnam can explain the requirements for foreign investors who want to set up businesses in this country.
 

Construction of industrial parks to continue growing

With such high demand for industrial land, the central authorities have announced the construction of 8 new industrial parks spanning over 2,300 ha. Out of these, 200 ha will be developed for supporting industries. By 2020, in Hanoi 14 new parks will be built.

The large number of requests is expected to trigger an increase in rental prices by 2025, which is why the local authorities have announced several incentives which will promote industrial companies. Moreover, the Ho Chi Min municipality has also created a database where all companies, local and foreign, will be entered with the purpose of easing the connection with the Business Register and other authorities.

If you are interested in starting a business in Vietnam and need assistance, please feel free to contact our company registration representatives.
 

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